A Federal High CourtFederal High Court in Lagos has delivered a ruling that could reshape the regulation of airtime and data credit services in Nigeria.
While the court affirmed the Federal Competition and Consumer Protection Commission’s (FCCPC) authority to regulate digital consumer lending, it ruled that only the Nigerian Communications Commission (NCC) has the legal power to license companies operating in the telecommunications sector.
The judgment has created uncertainty for five companies previously approved by the FCCPC to offer airtime and data credit services. However, the court made it clear that the Commission’s approval alone does not amount to a telecommunications licence.
The airtime data credit services ruling is expected to influence how digital lending and telecom services are regulated going forward.
Justice Ambrose Lewis-Allagoa delivered the judgment on July 20, 2026, in the case of WASPAN v. FCCPC (Suit No. FHC/L/CS/760/2026).
The court upheld the legality of the FCCPC’s DEON Consumer Lending Regulations.
It also lifted four interim injunctions that had restricted the Commission since April 15, 2026.
According to the judgment, the FCCPC has the legal authority under Sections 104 and 105 of the Federal Competition and Consumer Protection Act 2018 to regulate digital and online consumer lending activities.
However, the court drew a clear line between consumer protection and telecommunications licensing.
Justice Lewis-Allagoa ruled that the FCCPC’s powers exist alongside those of sector regulators. He explained that the NCC remains solely responsible for technical regulation, licensing and oversight of telecommunications services.
Therefore, companies seeking to operate on telecom networks must still obtain approval from the NCC.
The court further stated that the FCCPC’s DEON Regulations focus on consumer protection and competition.
They do not serve as a licence to provide telecommunications services. The ruling directly affects five firms approved by the FCCPC in April 2026.
The companies include Total Tim Nigeria Limited, Rane Interactive Medien CLS Limited, Mode NG Applications Limited, Cloud Interactive Associate Limited and Coverage Broadband Limited.
Their approvals came after major telecom operators suspended airtime and data credit services. The affected operators included MTN, Airtel, Glo and 9mobile.
The suspension reportedly disrupted services for about 40 million subscribers. Many users were unable to access services such as MTN XtraTime and Airtel Borrow Me Credit.
Consequently, the FCCPC approved alternative providers to restore access to airtime credit services.
Meanwhile, the court noted that airtime and data credit services depend on telecommunications infrastructure.
These include USSD platforms, SMS gateways, carrier billing systems and short codes. Such infrastructure falls under the exclusive regulatory control of the NCC.
As a result, companies approved by the FCCPC may still require separate authorisation before offering services through telecom networks.
Furthermore, the Association of Licensed Telecommunications Operators of Nigeria (ALTON) had earlier raised concerns about the regulatory framework.
ALTON Chairman, Gbenga Adebayo, warned that uncertainty surrounding the approval process could discourage investors.
He also noted that regulatory clarity remains important for Nigeria’s digital economy and infrastructure goals.
The judgment places both regulators within their respective legal responsibilities. While the FCCPC will continue protecting consumers and promoting fair competition, the NCC will remain responsible for licensing telecommunications operators.
It remains unclear whether the five FCCPC-approved firms can legally operate until they secure licences from the NCC.
Therefore, further guidance from the communications regulator is expected in the coming weeks as the industry adjusts to the court’s decision.
